Abstract
This study builds on parallel structural equation modeling (SEM) and fuzzy set Qualitative Comparative Analysis (fsQCA) to explore how formal and informal marketing controls affect firm performance by enhancing a firm's market-focused learning capability. The SEM results reveal that formal controls have a direct impact on market-focused learning capability and, thereby, firm performance, while informal controls strengthen this positive impact. Furthermore, results from fsQCA suggest that all configurations associated with high market-focused learning and/or high firm performance reflect high informal controls. Taken together, these results imply that informal controls serve as “hygiene factors” that are necessary but not sufficient to generate market-focused learning capability or firm performance. Finally, a firm's business strategy (i.e., cost leadership, differentiation or a dual strategy) is found to moderate the effectiveness of marketing controls: firms with a dual strategy benefit more from informal controls, while those with a clear strategy reap more benefits from formal controls.
Original language | English |
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Peer-reviewed scientific journal | Journal of Business Research |
Number of pages | 12 |
ISSN | 0148-2963 |
DOIs | |
Publication status | Published - 23.01.2019 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- Marketing controls
- Market-focused learning capability
- Structural equation modeling
- Configuration analysis
- Marketing Effectiveness and Profitability